Key facts
- Standard Chartered reported a 9% rise in first-half pretax profit to $4.78 billion.
- The bank lifted its full-year income growth target to the middle of a 5-7% range.
- Wealth management income increased by 38%.
- The bank announced a $1 billion share buyback and an interim dividend of 20.4 cents per share.
Standard Chartered reported a better-than-expected 9% rise in first-half pretax profit to $4.78 billion, surpassing the $4.52 billion average estimate from 16 analysts. The bank, which earns most of its revenue in Asia and Africa, lifted its full-year income growth target to the middle of a 5-7% range, from previous guidance for it to be closer to the bottom.
Wealth management income surged 38%, driven by double-digit growth in investment products as inflows and the number of new accounts increased amid strong demand for wealth advice during a period of market volatility. Group Chief Executive Bill Winters stated that clients continue to turn to the bank to facilitate trade, investment, and wealth flows across dynamic markets.
The bank's Middle East portfolio represents 6% of overall exposures and remained broadly stable. It took a $44 million additional impairment in the second quarter, partly reflecting early signs of distress in the petrochemical sector, and set aside $190 million as precautionary management overlays against expected future losses. Standard Chartered announced a $1 billion share buyback program and an interim dividend of 20.4 cents per share, up from 12 cents the year before.